Canada Stocks: TSX decline as investors react to US inflation data

Nexgen Energy

11/09/2024 16:08

(Updated at 10:08 a.m. ET/ 1408 GMT)
    By Nikhil Sharma
       Sept 11 (Reuters) - Canada's main stock index fell on
Wednesday in a broader decline, after mixed U.S. inflation data
reduced hopes for a mighty 50-basis points rate cut in the
United States next week.
    At 10:19 a.m. ET (14:19 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was down 126.22 points, or
0.55%, at 22,876.87.
    At least ten sectors saw declines, with the industrials
sector  .GSPTTIN  leading the way with a 1% drop, driven by SSR
Mining  SSRM.TO  down 3.1%, Orla Mining  OLA.TO  falling 2.5%
and OceanaGold  OGC.TO  edging down 2.0%.
    Domestic markets also took their clues from Wall Street
where the major indexes slipped following the key inflation
data.  .N 
    The U.S. consumer prices rose moderately in August, but
persistent sticky inflation might deter the Federal Reserve from
implementing a half-point interest rate cut next week.
    "Fed cutting rates in general is good our market" but "I
think for the next six weeks markets are going to be volatile,"
says Allan Small senior investment advisor at Allan Small
Financial Group with iA Private Wealth.
    Meanwhile, investors also reacted to the first U.S.
presidential debate between Donald Trump and Kamala Harris on
Tuesday that propped up Harris' odds of winning the White House
in November.
    Canada's consumer discretionary  .GSPTTCD  sector gained
1.4%, helped by discount retailer Dollarama  DOL.TO  rising 4.9%
after second-quarter profit beat.
    The TSX's energy group  .SPTTEN  rose 0.5%, while the
financials sector  .SPTTFS  slipped 0.2%.
    The most heavily traded shares by volume were Canadian
Natural Resources Ltd  CNQ.TO , Pembina Pipeline Corp  PPL.TO 
and Canadian National Railway Co  CNR.TO .
    Gold prices fell on Wednesday as the dollar and Treasury
yields firmed after U.S. inflation data. Meanwhile, West Texas
Intermediate crude futures  CLc1  rose 1.31% and Brent crude
 LCOc1  gained 1.04%  O/R 
    Crude oil and gold are among Canada's top exports.
    The TSX is up 9.6% for the year.

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya
Biswas and Vijay Kishore)
 ((Nikhil.Sharma@thomsonreuters.com;))